PRESS RELEASE
OECD
Council has approved Israel's adherence to the Declaration on International
Investment and Multinational Enterprises
25/7/2002
The Organisation
for Economic Co-operation and Development (OECD) Council approved on 11th
of July Israel's adherence to its Declaration on International Investment and
Multinational Enterprises. Israel's adherence to the Declaration constitutes a
fundamental phase in promoting its full membership to the OECD and in leveling
its economy as a developed market economy. The Council's approval of Israel's
adherence to the declaration shall have a positive impact on the investment
climate in Israel and will encourage foreign direct investments.
Israel's
adherence was preceded by a conclusive report, written by the OECD secretariat,
on Israel's economic and regulatory position regarding foreign direct
investments. The report involved an examination visit of the OECD secretariat
to Israel, which conducted thorough questioning and met various governmental
and private sector representatives. As part of the examination procedure an
Israeli inter-ministerial delegation appeared for examination before the
Committee on International Investment and Multinational Enterprises (CIME). The
OECD report is due to be published in the near future.
The
Declaration signed in 1976, by all OECD Member States (thirty states) at that
time, was later adopted by Argentina, Brazil, Chile, Estonia, Lithuania and
Slovenia. The Declaration's aim is to serve as a tool for enhancing the
international investment sphere, while encouraging multinational enterprises to
expand their activity. The Declaration stresses the positive manners in which
multinational enterprises can contribute to the economical and social
development, interwoven with an increased influx of cross border investments.
According
to the Declaration, the Member States are obliged to provide suitable
conditions for foreign enterprises, which are operating in their territories,
and to strengthen the cooperation among them in the field of foreign direct
investments.
The
declaration is based on four pillars, upon which the member states are bound
to:
1. Refrain from
discrimination of foreign companies operating in their territories.
2. Minimize the imposition
of conflicting requirements on multinational enterprises.
3. Recognize the mutual
interests of the other member states.
The
fourth pillar constitutes an ethical code (The OECD Guidelines for
Multinational Enterprises) for transparent and responsible behavior of the
multinational enterprises. The Guidelines aim is to ensure that the operations
of these enterprises are in harmony with government policies, to strengthen the
basis of mutual confidence between enterprises and the societies in which they
operate, to help improve the foreign investment climate and to enhance the
contribution to sustainable development made by multinational enterprises.
A
National Contact Point (NCP) is to be established at the Ministry of Industry
and Trade as a result of Israel's adherence to the Declaration. The NCP's role
is to further the effectiveness of the Guidelines. It will serve as a channel
between the government and the business community, trade unions,
non-governmental organisations and other bodies of vested interest. The NCP
will accept complaints submitted by Israeli entities against multinational
enterprises operating within Israel, and on the other hand, will accept
complaints regarding the activity of Israeli enterprises operating abroad.
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This page last updated on 28 July 2002